Wedbush Comments on Mastercard Inc’s Q1 2021 Earnings (NYSE:MA)

Mastercard Inc (NYSE:MA) – Equities research analysts at Wedbush reduced their Q1 2021 earnings per share estimates for shares of Mastercard in a research report issued on Monday, March 23rd. Wedbush analyst M. Katri now anticipates that the credit services provider will earn $2.08 per share for the quarter, down from their previous estimate of $2.38. Wedbush also issued estimates for Mastercard’s Q3 2021 earnings at $2.61 EPS and Q4 2021 earnings at $2.72 EPS.

Mastercard (NYSE:MA) last announced its quarterly earnings results on Wednesday, January 29th. The credit services provider reported $1.96 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.87 by $0.09. The company had revenue of $4.41 billion for the quarter, compared to analyst estimates of $4.40 billion. Mastercard had a net margin of 48.08% and a return on equity of 150.46%. The firm’s revenue was up 15.9% on a year-over-year basis. During the same period in the previous year, the firm posted $1.55 EPS.

Several other brokerages have also issued reports on MA. KeyCorp decreased their price target on shares of Mastercard from $350.00 to $285.00 and set an “overweight” rating on the stock in a report on Monday. Tigress Financial reaffirmed a “buy” rating on shares of Mastercard in a report on Wednesday, March 18th. Stephens decreased their price target on shares of Mastercard from $343.00 to $264.00 and set an “overweight” rating on the stock in a report on Wednesday. SunTrust Banks decreased their price target on shares of Mastercard from $380.00 to $285.00 and set a “buy” rating on the stock in a report on Wednesday. Finally, Wells Fargo & Co reaffirmed an “overweight” rating and set a $370.00 price target (up from $336.00) on shares of Mastercard in a report on Wednesday, January 29th. Three investment analysts have rated the stock with a hold rating and twenty-seven have assigned a buy rating to the company’s stock. Mastercard presently has a consensus rating of “Buy” and an average price target of $322.00.

Shares of Mastercard stock opened at $263.18 on Wednesday. The firm has a market capitalization of $238.28 billion, a PE ratio of 33.15, a price-to-earnings-growth ratio of 1.79 and a beta of 1.00. The company has a current ratio of 1.42, a quick ratio of 1.42 and a debt-to-equity ratio of 1.44. The firm’s 50 day moving average is $292.59 and its 200 day moving average is $289.98. Mastercard has a 1 year low of $199.99 and a 1 year high of $347.25.

A number of institutional investors and hedge funds have recently added to or reduced their stakes in MA. Norges Bank acquired a new position in Mastercard during the fourth quarter worth $2,754,179,000. Johanson Financial Advisors Inc. raised its holdings in Mastercard by 29,736.5% during the fourth quarter. Johanson Financial Advisors Inc. now owns 5,985,794 shares of the credit services provider’s stock worth $20,043,000 after buying an additional 5,965,732 shares during the last quarter. Private Advisor Group LLC raised its holdings in Mastercard by 101.0% during the fourth quarter. Private Advisor Group LLC now owns 47,225 shares of the credit services provider’s stock worth $14,041,000 after buying an additional 4,942,155 shares during the last quarter. Bank of New York Mellon Corp raised its holdings in Mastercard by 6.6% during the fourth quarter. Bank of New York Mellon Corp now owns 12,483,087 shares of the credit services provider’s stock worth $3,727,324,000 after buying an additional 772,021 shares during the last quarter. Finally, UBS Asset Management Americas Inc. raised its holdings in Mastercard by 11.4% during the fourth quarter. UBS Asset Management Americas Inc. now owns 6,474,640 shares of the credit services provider’s stock worth $1,933,263,000 after buying an additional 663,720 shares during the last quarter. Hedge funds and other institutional investors own 75.61% of the company’s stock.

In related news, CMO Venkata R. Madabhushi sold 7,492 shares of the business’s stock in a transaction on Wednesday, February 5th. The shares were sold at an average price of $335.00, for a total transaction of $2,509,820.00. Following the transaction, the chief marketing officer now owns 16,459 shares in the company, valued at approximately $5,513,765. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CMO Venkata R. Madabhushi sold 954 shares of the business’s stock in a transaction on Tuesday, February 11th. The shares were sold at an average price of $335.00, for a total transaction of $319,590.00. Following the transaction, the chief marketing officer now owns 13,093 shares in the company, valued at approximately $4,386,155. The disclosure for this sale can be found here. Insiders have sold a total of 425,819 shares of company stock worth $135,948,244 in the last quarter. 3.70% of the stock is owned by corporate insiders.

Mastercard declared that its board has authorized a stock buyback program on Tuesday, December 3rd that allows the company to buyback $8.00 billion in outstanding shares. This buyback authorization allows the credit services provider to reacquire up to 2.7% of its stock through open market purchases. Stock buyback programs are usually an indication that the company’s management believes its stock is undervalued.

The business also recently announced a quarterly dividend, which will be paid on Friday, May 8th. Investors of record on Thursday, April 9th will be given a dividend of $0.40 per share. The ex-dividend date is Wednesday, April 8th. This represents a $1.60 dividend on an annualized basis and a dividend yield of 0.61%. Mastercard’s payout ratio is presently 20.59%.

About Mastercard

Mastercard Incorporated, a technology company, provides transaction processing and other payment-related products and services in the United States and internationally. It facilitates the processing of payment transactions, including authorization, clearing, and settlement, as well as delivers related products and services.

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Earnings History and Estimates for Mastercard (NYSE:MA)

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